Botswana will introduce a citizenship-by-investment programme as it looks to reduce its dependence on diamond exports and cushion the impact of a global market slump, President Duma Boko announced on Friday.
The southern African nation, the world’s top diamond producer by value, has seen its budget squeezed this year amid a prolonged downturn in global diamond prices.
‘This programme will enable us to continue to secure the long-term financial future of Botswana,’ Boko said in a statement released in Gaborone.
Funds for key sectors
According to the government statement, revenue from the initiative will be channelled into priority areas including housing, tourism, renewable energy, mining and financial services. The required investment amount for prospective citizens has yet to be disclosed.
Botswana’s economy shrank by three percent last year and officials forecast another contraction in 2025 if diamond prices remain weak. The government is positioning the new programme as a way to diversify income sources and attract foreign capital to sectors beyond mining.
Economic diversification drive
The citizenship plan is the latest in a series of measures to shield the economy from the volatility of diamond revenues. In September, Botswana established a sovereign wealth fund to support diversification, create jobs and manage state-owned companies.
The government has also faced challenges in public health. In August, President Boko declared a public health emergency after failures in the national medical supply chain exposed vulnerabilities in essential services.
Arton Capital partnership
To implement the citizenship-by-investment programme, Botswana has signed a memorandum of understanding with investment migration consultancy Arton Capital. The firm will advise on the scheme’s design and help attract investors seeking citizenship opportunities.
Boko’s administration hopes the initiative will not only generate much-needed funds but also signal to international investors that Botswana is serious about reforming its economy beyond diamonds.
